The Labour Bureau revised minimum wages effective October 1, 2026, increasing rates for agricultural and other workers. The Variable Dearness Allowance (VDA), tied to inflation adjustments, raised daily wages for unskilled agricultural workers to ₹537, ₹491, and ₹486 in Areas A, B, and C respectively. According to the latest Labour Bureau statement dated October 1, 2026, the revision is based on the average Consumer Price Index for Industrial Workers (CPI-IW), which rose to 431.42 as of June 30, 2026 from 424.80, representing an increase of 6.62 points. The VDA is added to the basic wage to arrive at the minimum wage payable to workers, with the revised VDA having been rounded off to the next higher rupee in accordance with the decision of the Minimum Wages Advisory Board.
Construction workers will see significant wage increases with unskilled workers receiving ₹840 per day in Area A, ₹704 in Area B, and ₹565 in Area C. As per the latest Labour Bureau statement, the rates comprise basic minimum wage and revised VDA components. For example, an unskilled construction worker in Area A has a basic wage of ₹523 and VDA of ₹317, taking the total minimum wage to ₹840 per day. The construction category covers work involving roads, runways, buildings, and laying underground utilities including electric and communication cables, electric lines, water supply lines and sewerage pipelines. For highly skilled construction workers, the minimum wage reaches ₹1,111 per day in Area A.
Agricultural workers will receive higher minimum wages from October 1, 2026, with unskilled workers getting ₹537 per day in Area A, ₹491 in Area B, and ₹486 in Area C. According to the latest Labour Bureau data, the revised VDA for unskilled agricultural workers is ₹204 per day in Area A, ₹188 in Area B, and ₹186 in Area C. Highly skilled agricultural workers will see corresponding rates of ₹705, ₹655, and ₹587 per day respectively. The revised VDA for agricultural workers ranges from ₹204 to ₹267 across different skill categories, with semi-skilled/unskilled supervisory workers receiving ₹223 to ₹248 and skilled/clerical workers getting ₹242 to ₹248.
The October revision covers multiple employment categories including watch and ward duties workers receiving ₹1,024 per day in Area A for those without arms, and ₹1,111 for those with arms. As reported by Mint, the Centre has also revised minimum wages for workers involved in loading and unloading at railway goods sheds, warehouses, docks, ports and airports, as well as sweeping and cleaning work. These rates apply to workers in employment categories for which minimum wages are fixed by the central government under the Code on Wages, 2019. The revised VDA for watch and ward duties workers ranges from ₹223 to ₹354 across different skill categories.
The Variable Dearness Allowance is the inflation-linked component of minimum wages, revised every six months based on changes in the Consumer Price Index for Industrial Workers. According to the latest Labour Bureau statement, the VDA mechanism is intended to protect minimum wages from the impact of inflation. The revised VDA has been rounded up to the next higher rupee, and these are central-sphere minimum wages applicable to workers under central government minimum-wage notifications, while state-government workers may be governed by respective state rates. The final minimum wage is calculated by adding the applicable VDA to the basic wage, with the VDA ranging from ₹186 to ₹418 across different skill categories and areas.
